The repository of one hard-boiled egg from the south suburbs of Milwaukee, Wisconsin (and the occassional guest-blogger). The ramblings within may or may not offend, shock and awe you, but they are what I (or my guest-bloggers) think.

Pay No Attention to That Flashing Red Light

Yup, in short order, we the American taxpayer are paying more than Warren Buffet and his green companies for debt. Hell, we’re even paying more now than the Germans!

Haven’t the debt markets heard that the deficit problem has been solved? Yeah, you see, we’re going to pay for 30 million more people to have all the health coverage they want, none of them will pay a dime for it and yet it won’t cost the government an extra nickle. In fact, they’ve got this health thing so figured out that by paying for more people, we’re actually going to save money as a nation!

OK, to be fair, the article does say that part of the reason that the corporate debt yield is lower than the Treasury is that high credit companies don’t seem to be borrowing as much anymore. Huh, why do you suppose that is? Do they know something the Federal Government doesn’t? Yeah, probably one thing; any money they borrow they’ll eventually have to pay back without the ability to make wage slaves of their customers.

Auctions are strong for short and long treasuries. I notice you didn’t mention anything about the yield on Japanese treasuries. As for the Germans, the bund is the primary beneficiary of a flight to quality from the greek crisis. Same goes for U.S. treasuries during our crisis. Same exact thing. You can’t look at these things in a political vacuum.

“…companies don’t seem to be borrowing as much anymore. Huh, why do you suppose that is?”

They don’t have any customers. If they really feared future inflation, they would spend money now. They don’t. They fear deflation and they should. Especially once Uncle Sam’s stimulus will begin fading out later this year.